Australia’s Balance of Payment

Source: agsm.edu.au

Conclusion and Recommendations

From the above discussion, it is apparent that Australia has done remarkably well to achieve macroeconomic stability despite the global financial crunch. Sound policies can be accredited for the impressive economic performance. The macroeconomic stability of Australian economy has reduced unemployment rates remarkably. Also, sound monetary and fiscal policies have thrived well to contain and keep inflation at relatively very low rates. The aforementioned economic prosperities have enhanced the living standards of Australian citizens.

Despite the above advantages accrued courtesy of good macroeconomic performance, Australia faces a major challenge in the pricing of goods and services. The high prices of goods and services have crippled its terms of trade. Another major challenge facing Australian government is related to labour supply. A good number of Australian citizens are aging faster, this dwindles their production ability.

To fully address these challenges, the government of Australia needs to improve the skills of its workforce through enhanced trainings and improvement of learning facilities; this will ensure that its workforce is fully baked and able to handle skill related tasks. On matters of efficiency, the government needs to devise ways of enhancing sectoral cooperation. Finally, the ongoing fiscal measures aimed at enhancing infrastructural development ought to be enhanced as they widen up employment avenues as well as spur economic growth. Similarly, monetary policies need to be keenly monitored to ensure that not only inflation is kept in check, but also that macroeconomic stability is enhanced.